Belgian REIT Home Invest Belgium has bought 241 cottages in a Dutch Center Parcs holiday village for an undisclosed sum said to be in line with the fair value.
The cottages are part of the Port Zélande complex of around 700 holiday homes located in the southern Dutch coastal village Ouddorp. The complex is operated by Center Parcs, a subsidiary of the French group Pierre & Vacances.
The acquisition is Home Invest Belgium's first cross-border deal and makes it the most significant owner in the complex.
The cottages will be renovated and leased for a period of 15 years by Center Parcs based on a triple net rental agreement. The initial annual rent amounts to €2.32 mln excluding VAT and will be indexed every year.
The cottages are subject to a leasehold granted by the Dutch government which ends in 2086. At the end of that period, the leasehold will be renewed for 99 years, unless the Dutch government decides not to extend for reasons of national interest, in which case it will have to indemnify the leaseholder.
Home Invest Belgium said that based on the values as at 30 September, the acquisition would represent ± 10% of the portfolio of the REIT and will improve its geographical diversification. The acquisition was funded with credit lines which are due to expire in January 2025.
BNP Paribas Real Estate Hotels France, recently appointed as second certified property surveyor of the REIT, assessed the fair value and has been charged with the quarterly valuation of the portfolio.
Home Invest Belgium was advised by Atream, who will assist Home Invest Belgium in the management and administration of the cottages.
